Facts
Z. SA (the tenant) has been the tenant of commercial premises used as an automobile garage since 2004. On August 7, 2008, the previous owner, A. SA, terminated the leases effective June 30, 2014, citing a project to reconstruct the building. On June 21, 2013, A. SA sold the building to X. SA (the new owner). On September 20, 2013, X. SA prematurely terminated the tenant's leases effective April 1, 2014, citing the need to undertake major demolition and construction work.
The tenant contested these terminations before the Rental Tribunal, which declared them ineffective on the grounds that the new owner had not established an urgent need to use the premises. The Civil Court of Appeal confirmed this judgment.
The new owner appealed to the Federal Tribunal, which upheld the appeal.
Considerations
The Federal Tribunal examined whether the new owner had validly terminated the leases prematurely in accordance with Art. 261 para. 2 let. a CO, and whether the tenant should be granted an extension of the leases.
The Federal Tribunal considered that the new owner's own need must be accepted, as she intends to operate a hotel in the premises on her own account and risk, using a brand previously selected from a group of companies.
Regarding the urgency of the need, the Federal Tribunal found that the condition is met,…